Oil Futures Climb Over $69 as Production Continues to Reel from Hurricane Ida

Source: Bloomberg

Oil prices for future deliveries climbed as the market took into consideration the impact of Hurricane Ida, which continues to hit American production. WTI is up 1.81%, while Brent is up 1.55%

• Futures breached $69 a barrel, as nearly 80% of the US Gulf of Mexico output remained shut a week after Hurricane Ida hit.
• Regional grades such as the Mars Blend have already climbed to the highest in seven months since January, according to Bloomberg data.
• Analysts expect an even worse undersupply in the short term than previously expected as the shutdown of the Gulf of Mexico production continues. Protests in Libya could also dampen supply.
• Several regions in Europe have been reported high consumption, but uncertainties remain due to the spread of the COVID-19 delta variant.
• Gasoline inventories are predicted to have slipped by 3.7 million in the past week, the biggest swing in five weeks. Crude inventories are expected to have dropped by 6 million barrels.